May 2022
Revenue technology can identify opportunities that are more likely to close, helping marketing and sales teams optimize their efforts. Increasingly focusing on these opportunities leads to larger deals, shorter sales cycles, and — ultimately — higher revenues.
6sense Revenue AI is a comprehensive platform that puts the power of AI, big data, and machine learning in the hands of every member of the revenue team. With 6sense, revenue teams can capture anonymous buying signals throughout the buyer’s journey, target the right accounts at precisely the right time, and boost revenue performance with AI-driven recommendations for the channels and messages most likely to convert. 6sense Revenue AI removes the guesswork that creates waste and inefficiency in the day-to-day work of marketing, sales, and customer success.
6sense commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying 6sense Revenue AI.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of 6sense on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed nine decision-makers with experience using 6sense Revenue AI. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization.
Prior to using 6sense Revenue AI, these interviewees noted how their organizations’ marketing and sales practices had stagnated. The revenue teams’ status quo practices were not meeting goals, and technology further hampered the teams. The interviewees sought to jumpstart pipeline — and ultimately revenue — growth as well as improve their revenue teams’ procedures.
After investing in 6sense Revenue AI, the interviewees and their teams increasingly focused on opportunities the platform identified as 6sense Qualified Accounts (6QA). Opportunities might be flagged for any number of reasons. Often, the accounts showed greater intent to purchase. Pursuing these opportunities instead of leads from other sources had numerous positive effects, including increased average contract values, decreased average sales cycles, and increased topline revenue as the revenue teams optimized their resources.
Quantified benefits and costs are adjusted for risk to account for variation across organizations (both the interviewees as well as new organizations deploying the solution). In additional, financial sums are discounted by 10% per year to calculate present value (PV).
Quantified benefits. Three-year, risk-adjusted PV quantified benefits for the composite organization include:
Interviewees reported that 6QA opportunities were more likely to close and had higher average contract values. While the benefits varied based on the interviewees’ industries and other firmographics of their organizations, the aggregated data suggested that 6QA opportunities were often four times more likely to close than non-6QA opportunities and frequently had contract values two times higher. In addition, several interviewees reported at least a 20% increase in opportunity volume as 6sense Revenue AI helped them detect new opportunities and optimize their marketing efforts. By increasingly focusing on 6QA opportunities, the revenue teams delivered significant gains in profits for their organizations.
Interviewees reported that marketing teams changed their strategies and tactics to take advantage of insights from 6sense Revenue AI. Because 6QA leads were more likely to convert to opportunities, targeting them was a highly cost-effective way to spend their limited budgets and time. By realizing better results from equivalent spending, the marketing teams reduced their overall costs.
6QA opportunities often had shorter sales cycles. By leveraging 6sense to remove the guesswork and prioritize which accounts to pursue, salespeople improved their productivity. Furthermore, the relationships between sales and marketing improved after adopting 6sense Revenue AI. The groups pursued opportunities together — as unified revenue teams — for even greater results.
Costs. Risk-adjusted PV costs include:
Licensing costs may vary depending on usage and scope of the deployment (e.g., features, number of user seats, etc.).
The 6sense models should be trained on an organization’s historical sales data and customized to the organization’s business model before being widely deployed. 6sense performs the model training work, but organizations should still review and partner with 6sense to ensure optimal performance. The models also benefit from semiannual checkups, again in partnership with 6sense.
User training to use 6sense Revenue AI is not more extensive than for other new technologies. However, organizations should consider budgeting additional time for change management.
The decision-maker interviews and financial analysis found that a composite organization experiences benefits of $3.18 million over three years versus costs of $574,000, adding up to a net present value (NPV) of $2.61 million and an ROI of 454%.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that 6sense Revenue AI can have on an organization.
Interviewed 6sense stakeholders and Forrester analysts to gather data relative to 6sense Revenue AI.
Interviewed nine decision-makers at organizations using 6sense Revenue AI to obtain data with respect to costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the decision-makers.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by 6sense and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in 6sense Revenue AI.
6sense reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
6sense provided the customer names for the interviews but did not participate in the interviews.
Interviewee | Industry | Region | Employees | Years Implemented |
---|---|---|---|---|
VP, strategic marketing and demand generation | Professional services | Headquartered in North America with global operations | 101 to 500 employees | Three to four years |
Manager, marketing operations | Professional services | Headquartered in North America with global operations | 101 to 500 employees | Three to four years |
VP, growth marketing | Cybersecurity | Headquartered in North America with global operations | 501 to 1,000 employees | One to two years |
Senior manager, marketing operations | Cybersecurity | Headquartered in North America with global operations | 501 to 1,000 employees | One to two years |
Head of marketing operations | Networking | Headquartered in North America with global operations | 5,001 to 10,000 employees | Two years |
VP, marketing strategy and marketing operations | Marketing | Headquartered in North America with global operations | 1,001 to 5,000 employees | One year |
Senior manager, marketing | Media | Headquartered in North America with global operations | Over 10,001 employees | Three years |
Product manager | Media | Headquartered in North America with global operations | Over 10,001 employees | Three years |
Director, demand generation | Cybersecurity | Headquartered in North America with global operations | 501 to 1,000 employees | Two years |
Interviewees said that their revenue teams struggled to jumpstart revenue growth before they invested in 6sense Revenue AI. Their teams’ previous marketing and sales practices — some of which had been optimized for a predigital era — were no longer effective. Moreover, subpar technology supported the teams — their revenue technology stacks were siloed and they were wasting time on manual work.
The interviewees described the following challenges:
Interviewees reported that sometimes sales received leads that were low-quality or incorrectly qualified. The director of demand generation at a cybersecurity firm explained: “[Marketing] was just shooting in the dark, right? ... Before we had 6sense, we made assumptions about what people were interested in. ... And sometimes that worked. [But] getting [prospects] hooked [in the] initial conversation when we have a full portfolio [of products and services] was definitely challenging.” Interviewees struggled to increase not just pipeline quantity, but also quality.
Interviewees said that low collaboration between sales and marketing had contributed to their organizations’ difficulties. The VP of growth marketing in cybersecurity explained, “We actually had failed [account-based marketing] (ABM) attempts in the past before [6sense], and it was because marketing tried to do it as a marketing effort and [did not bring] sales along for the ride.” They added: “[Before 6sense,] sales reps weren’t notified when there was significant activity from accounts they owned. There just wasn’t two-way communication between sales and marketing.”
Interviewees said their technology stacks often consisted of siloed point solutions, and one organization even built its own solution. There were significant issues with data quality, and the tools required revenue teams to still perform substantial manual work.
Two of the interviewees noted their organizations tried to implement ABM in the past with other tools. But as the product manager in media explained: “ABM was pretty siloed and [had only] pocketed use [by just one team]. And it was pretty traditional ABM. ... They were using [another platform, but] the rest of the business wasn’t using [it and,] for the most part, usage was spotty.”
The interviewees’ organizations searched for a solution that could:
All interviewees wanted to improve results at every stage of the B2B revenue waterfall. The interviewees at organizations that had experimented with ABM and intent data in the past had seen potential in the strategies but had struggled to scale them. And the interviewees with existing revenue technology in place (i.e., for ABM) wanted tools that would deliver superior results. In many cases, the interviewees ran head-to-head comparisons between 6sense Revenue AI and alternative tools. Interviewees performed significant due diligence to evaluate 6sense performance and results.
Two interviewees described how the COVID-19 pandemic created an urgent need to improve their revenue teams’ digital practices. At least temporarily, marketing stopped holding events and salespeople stopped visiting their customers. The director of demand generation in cybersecurity explained: “The ways we did things completely and totally changed, right? [But] we were able to adapt a lot better than if we hadn’t had 6sense in place. ... I feel like we were really lucky that we had [6sense already] implemented [and] integrated with the rest of our systems.”
To compete against larger companies, the smaller organizations needed to use their resources — both their marketing budgets and their employees’ time — optimally. The head of marketing operations in networking explained: “We compete with companies that have a lot [more] revenue [and] bigger brand recognition. With a tool like 6sense, we really feel like we’re able to compete with them without breaking the bank.”
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the nine decision-makers that Forrester interviewed and is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
The composite organization is an innovative, fast-moving company within its industry. It has a market valuation over $100 million and around 500 employees. The composite organization’s primary customers are other businesses. It targets a $500 million market. In this target market, there are about 1,000 opportunities annually, and the target average contract value is $500,000.
Initially, the composite organization’s revenue team includes six marketers, 12 salespeople, and a few senior marketing operations managers. However, the marketing and sales teams do not collaborate. Similarly, the teams’ technology stacks are fragmented — there are multiple point solutions, including a legacy ABM platform.
When the composite organization invests in 6sense Revenue AI, the senior marketing operations managers oversee the platform’s deployment and the initial training of the 6sense models. The composite organization increases its investment in 6sense over time (i.e., by deploying additional features). The composite organization onramps both the marketers and salespeople on the platform in Year 1.
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Profit maximization | $350,000 | $696,500 | $1,151,500 | $2,198,000 | $1,758,941 |
Btr | Marketing optimization | $8,631 | $34,812 | $79,415 | $122,857 | $96,282 |
Ctr | Sales optimization | $301,600 | $549,229 | $799,889 | $1,650,718 | $1,329,059 |
Total benefits (risk-adjusted) | $660,231 | $1,280,541 | $2,030,804 | $3,971,576 | $3,184,282 |
The interviewees said that utilizing 6sense Revenue AI throughout their marketing and sales teams improved outcomes at multiple stages in their revenue generation processes. 6sense’s predictive models identified opportunities that were higher value and more likely to close sooner — in other words, opportunities that should be priority targets for the revenue teams’ limited resources. Increasingly focusing on these opportunities, which 6sense refers to as 6sense Qualified Accounts (6QA), helped the interviewees’ organizations increase their revenues.
Interviewees reported different improvements depending on their organizations’ business models and other firmographics. Example benefits are below (and are organized by stage in the B2B revenue waterfall):
For the composite organization, Forrester assumes:
Before the composite organization deploys 6sense:
After the composite organization deploys 6sense:
This benefit may vary for the following reasons:
The degree of focus on 6QA opportunities over non-6QA opportunities may vary. Organizational change often takes longer at larger organizations. According to the interviewees, their marketing teams adopted 6sense before their sales teams. At the two largest organizations, the sales teams had not yet embraced 6sense.
Tables RA and RB compare revenue from 6QA opportunities to revenue from non-6QA opportunities for the composite organization. Interested readers can model the effects of allocating more (or less) effort to 6QA opportunities by varying the percentage of opportunities that are 6QA in Table RA (but the percentage of opportunities that are 6QA should not be set too high — in practice, extreme values such as 100% are unrealistic).
To account for these risks, Forrester adjusted this benefit downward by 30%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.8 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
A1 | Target market | Assumption | $500,000,000 | $500,000,000 | $500,000,000 | ||
A2 | Target opportunities | Assumption | 1,000 | 1,000 | 1,000 | ||
A3 | Target ACV | A1/A2 | $500,000 | $500,000 | $500,000 | ||
A4 | Before 6sense: Percentage of opportunities detected and qualified | Assumption | 12.5% | 12.5% | 12.5% | ||
A5 | Before 6sense: Qualified opportunities | A2*A4 | 125 | 125 | 125 | ||
A6 | Before 6sense: ACV of qualified opportunities | A3/2 | $250,000 | $250,000 | $250,000 | ||
A7 | Before 6sense: Qualified pipeline | A6*A5 | $31,250,000 | $31,250,000 | $31,250,000 | ||
A8 | Before 6sense: Win rate | Assumption | 13.0% | 13.0% | 13.0% | ||
A9 | Before 6sense: Opportunities closed/won | A5*A8 | 16 | 16 | 16 | ||
A10 | Subtotal: Before 6sense: Sales revenue | A6*A9 | $4,000,000 | $4,000,000 | $4,000,000 | ||
A11 | After 6sense: Percentage of opportunities detected and qualified | Y1: A4*(1+20%); Y2 and Y3: A11PY*(1+20%) | 15.0% | 18.0% | 21.6% | ||
A12 | After 6sense: Qualified opportunities | A2*A11 | 150 | 180 | 216 | ||
A13 | After 6sense: ACV of qualified opportunities | (RA3*RA4+RB3*RB4)/A12 | $300,000 | $325,000 | $349,537 | ||
A14 | After 6sense: Qualified pipeline | RA5+RB5 or A12*A13 | $45,000,000 | $58,500,000 | $75,500,000 | ||
A15 | After 6sense: Win rate | (A12*RA2*RA6+A12*RB2*RB6)/A12 | 16.0% | 19.0% | 22.0% | ||
A16 | After 6sense: Opportunities closed/won | RA7+RB7 or A12*A15 | 24 | 34 | 47 | ||
A17 | Subtotal: After 6sense: Sales revenue | RAt+RBt | $9,000,000 | $13,950,000 | $20,450,000 | ||
A18 | After 6sense: Incremental sales revenue | A17-A10 | $5,000,000 | $9,950,000 | $16,450,000 | ||
A19 | Operating margin | Assumption | 10.0% | 10.0% | 10.0% | ||
At | Profit maximization | A18*A19 | $500,000 | $995,000 | $1,645,000 | ||
Risk adjustment | ↓30% | ||||||
Atr | Profit maximization (risk-adjusted) | $350,000 | $696,500 | $1,151,500 | |||
Three-year total: $2,198,000 | Three-year present value: $1,758,941 | ||||||
|
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
RA1 | After 6sense: Qualified opportunities | A12 | 150 | 180 | 216 | ||
RA2 | Percentage of qualified opportunities that are 6QA | Assumption | 20% | 30% | 40% | ||
RA3 | Qualified opportunities that are 6QA | RA1*RA2 | 30 | 54 | 86 | ||
RA4 | ACV of qualified opportunities that are 6QA | A3 | $500,000 | $500,000 | $500,000 | ||
RA5 | Qualified pipeline that is 6QA | RA3*RA4 | $15,000,000 | $27,000,000 | $43,000,000 | ||
RA6 | Win rate for 6QA opportunities | Assumption | 40% | 40% | 40% | ||
RA7 | 6QA opportunities closed/won | RA3*RA6 | 12 | 22 | 34 | ||
RAt | Subtotal: Revenue from 6QA opportunities | RA7*RA4 | $6,000,000 | $10,800,000 | $17,200,000 | ||
|
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
RB1 | After 6sense: Qualified opportunities | A12 | 150 | 180 | 216 | ||
RB2 | Percentage of qualified opportunities that are non-6QA | 100%-RA2 | 80% | 70% | 60% | ||
RB3 | Qualified opportunities that are non-6QA | RB1*RB2 | 120 | 126 | 130 | ||
RB4 | ACV of qualified opportunities that are non-6QA | A6 | $250,000 | $250,000 | $250,000 | ||
RB5 | Qualified pipeline that is non-6QA | RB3*RB4 | $30,000,000 | $31,500,000 | $32,500,000 | ||
RB6 | Win rate for non-6QA opportunities | RA6/4 | 10% | 10% | 10% | ||
RB7 | Non-6QA opportunities closed/won | RB3*RB6 | 12 | 13 | 13 | ||
RBt | Subtotal: Revenue from non-6QA opportunities | RB7*RB4 | $3,000,000 | $3,150,000 | $3,250,000 | ||
|
Interviewees said that they used 6sense to market more efficiently and effectively. The interviewees reported the following experiences:
The interviewees from the professional services industry noted their organization measured its marketing effectiveness by tracking the number of MQLs per closed deal. The VP of strategic marketing and demand generation at the firm said that that number had dropped by nearly 50% within two years of implementing 6sense.
The VP of marketing strategy and marketing operations in the marketing industry said: “We’ve definitely seen a two-times increase in conversion. We’re not doing anything different other than leveraging [6sense and targeting] in-market [6QA] accounts.”
The VP of growth marketing in cybersecurity explained how their organization had changed its marketing strategy: “[Before,] we depended on [prospects] filling out forms, [so] that was the only visibility we had. We now look at every page [on our website as part of] the funnel.”
The head of marketing operations in networking explained: “6sense definitely gives us the opportunity to reach different audiences across different channels [and] different sites. ... We would not be able to afford [that] type of impact otherwise.”
For the composite organization, Forrester assumes:
This benefit will vary for the following reasons:
To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV of $97,000.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
B1 | Marketers at composite organization | Assumption | 6 | 6 | 6 | ||
B2 | Marketer fully burdened hourly rate | $68,000*1.35/2,080 | $44 | $44 | $44 | ||
B3 | Percentage of revenue spent on digital marketing | 7.5%*50% | 3.75% | 3.75% | 3.75% | ||
B4 | Before 6sense: Digital marketing spend per qualified opportunity | A10*B3/A5 | $1,200 | $1,200 | $1,200 | ||
B5 | Total hours spent implementing digital marketing | B1*2,080*25% | 3,120 | 3,120 | 3,120 | ||
B6 | Before 6sense: Implementation hours per qualified opportunity | B5/A5 | 25 | 25 | 25 | ||
B7 | Subtotal: before 6sense: total marketing cost per qualified opportunity | B4+B2*B6 | $2,302 | $2,302 | $2,302 | ||
B8 | After 6sense: digital marketing spend per qualified opportunity | A10*B3/A12 | $1,000 | $833 | $694 | ||
B9 | After 6sense: implementation hours per qualified opportunity | B5/A12 | 21 | 17 | 14 | ||
B10 | Subtotal: after 6sense: total marketing cost per qualified opportunity | B8+B2*B9 | $1,918 | $1,598 | $1,332 | ||
B11 | Incremental qualified opportunities after 6sense | A12-A5 | 25 | 55 | 91 | ||
Bt | Marketing optimization | (B7-B10)*B11 | $9,590 | $38,680 | $88,239 | ||
Risk adjustment | ↓10% | ||||||
Btr | Marketing optimization (risk-adjusted) | $8,631 | $34,812 | $79,415 | |||
Three-year total: $122,857 | Three-year present value: $96,282 | ||||||
|
Interviewees said that 6sense Revenue AI increased their salespeople’s productivity. While 6sense features can improve efficiency, the interviewees reported that acting on the insights 6sense provided allowed salespeople to realize more significant gains.
The interviewees reported the following experiences:
6sense Revenue AI helped sales identify accounts that were ready to make purchasing decisions. Accordingly, sales cycles for the associated opportunities were significantly shorter.
The VP of marketing strategy and marketing operations in the marketing industry explained: “[6sense] helps reps prioritize which MQLs to follow up with first. You [as a sales rep] are going to go after the ‘in-market’ [6QA opportunities] before you go after the [opportunities in other stages like] ‘consideration’ or ‘awareness.’ When it comes to pure prioritization ... we try to standardize on 6sense.”
Similarly, the VP of strategic marketing and demand generation in professional services said, “If I [as a salesperson] have a limited amount of time and limited amount capacity, [then] I want to focus on [the 6QA accounts].”
The VP of strategic marketing and demand generation in professional services said: “Marketing ... will actually go through [opportunities] for [sales] and [suggest accounts to pursue]. ... We use the information [from 6sense] to let us know what leads ... to go after.” The interviewee explained that, using 6sense, marketing provides sales with additional insights such as search terms for the account or campaigns the account has recently interacted with. The reps are then armed with that info when they reach out.
Similarly, the senior manager of marketing operations reported: “When sales started following up [with 6QA opportunities], they saw better responses. ... They were able to get more meetings.”
The director of demand generation in cybersecurity said: “[Sales no longer complains about] needing higher-quality leads — that’s dropped off the list. ... Before [6sense], it was probably in the top one or two things we heard every time we talked to sales.”
The VP of growth marketing in cybersecurity similarly said, “We really partnered with different parts of the organization — including field marketing, sales enablement, and sales ops — to continue to be in front of them with this data.”
For the composite organization, Forrester assumes:
Before the composite organization deploys 6sense:
After the composite organization deploys 6sense:
This benefit will vary for the following reasons:
To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV of $1.3 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
C1 | Before 6sense: Salespeople at composite organization | Assumption | 12 | 12 | 12 | ||
C2 | Before 6sense: Total selling time (hours) | C1*(2,080*50%) | 12,480 | 12,480 | 12,480 | ||
C3 | Before 6sense: Opportunities closed/won | A9 | 16 | 16 | 16 | ||
C4 | Subtotal: Before 6sense: Average selling time per opportunity closed/won (hours) | C2/C3 | 780 | 780 | 780 | ||
C5 | After 6sense: Salespeople at composite organization | Assumption | 14 | 17 | 21 | ||
C6 | After 6sense: Total selling time (hours) | C5*(2,080*50%) | 14,560 | 17,680 | 21,840 | ||
C7 | After 6sense: Opportunities closed/won | A16 | 24 | 34 | 47 | ||
C8 | Subtotal: After 6sense: Average selling time per opportunity closed/won (hours) | (RA7*RCt+RB7*RCt)/C7 or C6/C7 | 607 | 517 | 461 | ||
C9 | After 6sense: Reduction in average selling time per opportunity closed/won (hours) | C4-C8 | 173 | 263 | 319 | ||
C10 | Salesperson fully burdened hourly rate (excluding commission) | Assumption: $89,000*1.35/2,080 | $58 | $58 | $58 | ||
C11 | Percent captured | Assumption | 25% | 25% | 25% | ||
Ct | Sales optimization | A12*C9*C10*C11 | $377,000 | $686,537 | $999,861 | ||
Risk adjustment | ↓20% | ||||||
Ctr | Sales optimization (risk-adjusted) | $301,600 | $549,229 | $799,889 | |||
Three-year total: $1,650,718 | Three-year present value: $1,329,059 | ||||||
|
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
RC1 | Percentage of qualified opportunities that are 6QA | RA2 | 20% | 30% | 40% | ||
RC2 | Total selling time spent on 6QA opportunities (hours) | C6*RC1 | 2,912 | 5,304 | 8,736 | ||
RC3 | 6QA opportunities closed/won | RA7 | 12 | 22 | 34 | ||
RCt | Subtotal: Selling time per 6QA opportunity closed/won (hours) | RC2/RC3 | 243 | 246 | 254 | ||
|
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
RD1 | Percentage of qualified opportunities that are non-6QA | RB2 | 80% | 70% | 60% | ||
RD2 | Total selling time spent on non-6A opportunities (hours) | C6*RD1 | 11,648 | 12,376 | 13,104 | ||
RD3 | Non-6QA opportunities closed/won | RB7 | 12 | 13 | 13 | ||
RDt | Subtotal: Selling time per non-6QA opportunity closed/won (hours) | RD2/RD3 | 971 | 982 | 1,008 | ||
|
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement 6sense Revenue AI and later realize additional uses and business opportunities, including:
The product manager for a media organization described how switching to 6sense Revenue AI consolidated many of their organization’s marketing tools under one solution. They said: “There’s been a massive consolidation [under 6sense]. In terms of ABM platforms, it’s fully consolidated. From what I’m aware of, 6sense is the only kind of ABM intent-based platform that we’re using as an organization. And then there’s been a whole bunch of standard consolidation across other types of products as well. It’s an ongoing process, but there has been a lot of consolidation over the last three to four years.”
The VP of marketing strategy and marketing operations for a networking company said: “We think about [6sense when] we build all of our programs. The support and the attention we get from [6sense] and how they help support us across all of our functions and all of our teams has been really impactful for us as we build out the platform into the rest of our business.” They went on to describe how this gives them a competitive advantage in the market, stating: “[6sense] has created really great synergies between sales and marketing. ... It definitely gives us ... more room to compete with our big competitors.”
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Dtr | 6sense platform license | $62,500 | $135,000 | $172,500 | $185,000 | $555,000 | $466,782 |
Etr | Platform deployment and maintenance | $51,000 | $17,000 | $17,000 | $17,000 | $102,000 | $93,276 |
Ftr | User training | $0 | $4,915 | $5,930 | $7,090 | $17,934 | $14,695 |
Total costs (risk-adjusted) | $113,500 | $155,465 | $195,575 | $209,235 | $673,774 | $573,663 |
The interviewees believed that investments in revenue technology were necessary for their organizations, and they felt that 6sense’s pricing was fair. Two organizations had switched from alternative vendors. However, pricing was not a factor in those decisions. Instead, the interviewees said their organizations switched because 6sense yielded superior results.
The interviewees also believed that 6sense’s customer support added value beyond what was reflected in the licensing fees for the software. The interviewees all described strong relationships with 6sense as a vendor.
The senior manager of marketing operations in cybersecurity said: “[6sense is] constantly updating their product and releasing new features. [And] we’re getting [strong] support from [our] customer support manager — [for example,] they encourage us to do things we’re not doing. [6sense] also [has] this great community, too. ... All of these things have been so transformative, even if it’s not related to 6sense. They’ve helped us improve our processes. ... So [6sense] is so much more than just the [software]. ... It’s a change in our approach and we feel like we’ve got like a team there to help us along the way.”
They concluded: “6sense was such a great partner to us in that they really gave us access to [best practices]. ... They really provided a lot of training there.”
Licensing fees for the composite organization are based on pricing information 6sense provided.
Organizations can expect pricing to vary based on features, number of user seats, etc. Readers should contact 6sense for custom quotes.
To account for these risks, Forrester adjusted this cost upward by 25%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $467,000.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
D1 | 6sense platform license | Assumption | $50,000 | $108,000 | $138,000 | $148,000 | |
Dt | 6sense platform license | D1 | $50,000 | $108,000 | $138,000 | $148,000 | |
Risk adjustment | ↑25% | ||||||
Dtr | 6sense platform license (risk-adjusted) | $62,500 | $135,000 | $172,500 | $185,000 | ||
Three-year total: $555,000 | Three-year present value: $466,782 | ||||||
|
The interviewees — senior marketing operations managers at their organizations — oversaw the 6sense deployments and maintenance themselves. During an initial deployment period, 6sense trained its predictive models based on the organizations’ historical data and optimized the models to meet the organizations’ business goals. The senior marketing operations managers oversaw the technical integrations, provided input during model development (e.g., detailing business models and goals), reviewed model performance, and developed strategies to rollout the platform organizationwide. Full 6sense deployment typically took about one fiscal quarter with interim benchmarks met along the way.
Also, the interviewees recommended regularly checking on and retuning the predictive models to keep performance high — for example, when the goals or strategies of the business changed.
For the composite organization, Forrester assumes:
Deployment and maintenance effort may vary for organization-specific reasons. For example, interviewees at organizations with complicated or frequently-changing business models or with low-quality CRM data reported longer model development times.
To account for these risks, Forrester adjusted this cost upward by 25%, yielding a three-year, risk-adjusted total PV of $93,000.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
E1 | Platform deployment (including initial model training) (hours) | Interviews | 480 | 0 | 0 | 0 | |
E2 | Platform maintenance (including model updates) (hours) | Interviews | 0 | 160 | 160 | 160 | |
E3 | Senior marketing operations manager fully burdened hourly rate | $131,000*1.35/2,080 | $85 | $85 | $85 | $85 | |
Et | Platform deployment and maintenance | (E1*E2)*E3 | $40,800 | $13,600 | $13,600 | $13,600 | |
Risk adjustment | ↑25% | ||||||
Etr | Platform deployment and maintenance (risk-adjusted) | $51,000 | $17,000 | $17,000 | $17,000 | ||
Three-year total: $102,000 | Three-year present value: $93,276 | ||||||
|
The interviewees noted that some training was necessary for users to take full advantage of 6sense Revenue AI.
However, in the interviewees’ views, investing in organizational change (i.e., encouraging new practices leveraging 6sense) was more important than platform training. Often, marketing teams adopted 6sense before sales teams. Sales teams were sometimes resistant to new processes, and fostering organizational change was hardest at the largest organizations.
The interviewees described the following experiences:
For the composite organization, Forrester assumes:
This cost may vary because change management costs are highly variable. For example, organizations already practicing ABM may have lower change management costs. Similarly, small organizations may find it easier to foster change while large organizations may find that it harder. And the time necessary to effect widespread change will vary from organization to organization.
Forrester’s model does not calculate change management costs because these are not directly attributable to 6sense and would be incurred by any organization adopting a similar new technology. At the composite organization, organizational change happens before widespread deployment in Year 1.
To account for these risks, Forrester adjusted this cost upward by 25%, yielding a three-year, risk-adjusted total PV of $14,000.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
F1 | Senior marketing operations manager training (hours) | Assumption | 10 | 5 | 5 | 5 | |
F2 | Senior marketing operations managers | Composite | 2 | 2 | 2 | 2 | |
F3 | Senior marketing operations manager fully burdened hourly rate | E3 | $85 | $85 | $85 | $85 | |
F4 | Salesperson initial training (hours) | Assumption | 10 | 10 | 10 | 10 | |
F5 | Salesperson renewal training (hours) | Assumption | 2 | 2 | 2 | 2 | |
F6 | Salespeople receiving initial training | Initial: C1; Y1 to Y3: C5-(F6PY-1+F6PY-2+F6+PY-3) | 12 | 2 | 3 | 4 | |
F7 | Salespeople receiving renewal training | C5-F6 | 0 | 2 | 14 | 17 | |
F8 | Salesperson fully burdened hourly rate (excluding commission) | C10 | $58 | $58 | $58 | $58 | |
F9 | Marketer training (hours) | Assumption | 10 | 2 | 2 | 2 | |
F10 | Marketers at composite organization | B1 | 6 | 6 | 6 | 6 | |
F11 | Marketer fully burdened hourly rate | B2 | $44 | $44 | $44 | $44 | |
Ft | User training | (F2*F3*F1)+((F4*F6+F5*F7)*F8)+ (F10*F11*F9) | $11,308 | $3,932 | $4,744 | $5,672 | |
Risk adjustment | ↑25% | ||||||
Ftr | User training (risk-adjusted) | $4,915 | $5,930 | $7,090 | |||
Three-year total: $17,934 | Three-year present value: $14,695 | ||||||
|
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($113,500) | ($156,915) | ($195,430) | ($209,090) | ($674,934) | ($574,753) |
Total benefits | $0 | $660,231 | $1,280,541 | $2,030,804 | $3,971,576 | $3,184,282 |
Net benefits | ($113,500) | $504,766 | $1,084,967 | $1,821,569 | $3,297,802 | $2,609,529 |
ROI | 454% | |||||
Payback period (months) | <6 | |||||
|
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.
Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
“Defining The Standard: B2B Revenue Waterfall™ Stage Definitions,” Forrester, Inc., January 10, 2021.
“Use The B2B Revenue Waterfall To Manage All Revenue Opportunities,” Forrester, Inc., May 14, 2021.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
2 Source: “The US Digital Marketing Forecast, 2018 To 2023,” Forrester Research, Inc., February 7, 2019.
3 Source: Kent Lewis, “How will marketers spend their time at work post-COVID?,” SEMpdx, 2022.
4 Source: Mark Ellwood, “How Do Sales Reps Spend Their Time?,” Get More Done, January 2016.